Kentucky Audit Finds Waste in Coal Mine Cleanup

Report cites lack of oversight and mismanagement of grant funds for abandoned mine reclamation.

Apr. 2, 2026 at 10:25am

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A new state audit has uncovered significant issues with how Kentucky has managed federal grant funds for the cleanup and reclamation of abandoned coal mines. The audit found the state agency responsible failed to properly report or track the use of these grant monies, leading to waste and a lack of accountability.

Why it matters

Kentucky is home to thousands of abandoned coal mines, many of which pose environmental and safety hazards. Federal funds are provided to states to help address these legacy issues, but this audit raises concerns about the state's ability to effectively utilize and oversee these critical resources.

The details

The audit, conducted by the Kentucky Auditor of Public Accounts, examined the state's management of federal Abandoned Mine Land (AML) grants over a multi-year period. It found the Kentucky Department of Natural Resources failed to properly report how grant funds were being spent and did not maintain adequate records to track the use of the monies. This led to instances of questionable expenditures and a lack of transparency around the cleanup efforts.

  • The audit covered the state's handling of AML grants from 2018 to 2025.
  • The report was publicly released on April 2, 2026.

The players

Kentucky Department of Natural Resources

The state agency responsible for overseeing the use of federal funds for abandoned mine reclamation projects in Kentucky.

Kentucky Auditor of Public Accounts

The state government office that conducted the audit examining the Kentucky Department of Natural Resources' management of AML grant funds.

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What they’re saying

“This audit raises serious concerns about how Kentucky has been handling critical federal funds meant to clean up the state's many abandoned coal mines. Taxpayers deserve to know their money is being used effectively and responsibly.”

— Mike Harmon, Kentucky Auditor of Public Accounts

What’s next

The Kentucky Department of Natural Resources has pledged to implement the audit's recommendations to improve oversight and reporting on the use of AML grant funds going forward.

The takeaway

This audit underscores the need for stronger accountability and transparency around how states manage federal resources dedicated to addressing the environmental legacy of the coal industry. Effective oversight is crucial to ensure these funds are being utilized properly to protect public health and safety.